We're again to the 'money is trash' period and that's a warning signal

Financial institution of America is out with its newest fund supervisor survey and it is plagued by pink flags a few crowded inventory market, notably in US equities.

This chart would possibly stand out essentially the most because it signifies that money allocations are the bottom since January 2002.

Mix that with IBKR’s Chairman highlighting that retail is over-leveraged, meme shares and Rosenberg capitulating and you’ve got too many pink flags for consolation.

“A downturn is a really huge threat as a result of margin balances have been rising very, in a short time,,” Thomas Peterffy mentioned yesterday.

For context, from January 2002 to July of that 12 months, the S&P 500 fell 34%.

Right here is one other pink flag from the buyer confidence survey, it reveals the proportion of respondents who assume shares will probably be greater within the 12 months forward.

This text was written by Adam Button at www.ubaidahsan.com.



Source link